In March that year, Rugby Australia stripped the club of its licence after the collapse; in June, it finally killed the club, which struggled to pull in crowds as its expenses continued to climb.
The Melbourne Rebels’ directors are now suing Rugby Australia for $30 million, alleging the sports governing body was liable to pay the tax debt and had breached its obligations in its handling of the financial woes facing teams in the competition.
Former Rebels chairman Paul Docherty in happier times with head coach Kevin Foote and former chief executive Baden Stephenson.
In return, Rugby Australia alleged it was misled by the Rebels as to the actual dire state of its finances.
Docherty applied for a personal insolvency agreement in September. That move came after
mall business lender Judo filed court action to have him declared bankrupt earlier this year.
A personal insolvency agreement will allow the entrepreneur to put a deal to his creditors to clean out his debts without formally entering into bankruptcy.
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Docherty once oversaw a sprawling empire of start-ups under his BRC Group of companies, including 3D-printed medical device company 3DMediTech, dental aligner maker SmileStyler Solutions and cleaning brand owner Hiro Brands.
More than a dozen of Docherty’s start-ups and other businesses collapsed during 2024, including 3DMediTech, SmileStyler and Hiro Brands.
Docherty was also the head of the Australian branch of internal networking association, the Young Presidents’ Organisation, until his business troubles forced him to step down from that role in 2024.
According to Docherty’s filing with bankruptcy regulator, the Australian Financial Security Authority, Docherty has debts of $43 million to the Myer family via its development arm, Goldhill.
Goldhill is behind a 57-storey residential development proposal in the Arden precinct of North Melbourne, which is tied to Docherty’s BRC group of companies. According to ASIC records, Goldhill’s directors are Sidney Myer, Rupert Myer and Samantha Baillieu – the three children of noted Melburnian and business leader Sidney “Bails” Myer.
The Arden precinct is prime real estate for development. Credit: Jason South
The ATO is the second-largest creditor to Docherty’s affairs, being owed $5.8 million by the businessman.
Docherty’s former colleagues at the Melbourne Rebels are also listed as creditors by Docherty. This includes former Rebels chief executive Tom Fraser (owed $25,000) and former Rebels directors Lyndsey Cattermole (owed $45,000) and Gary Gray (owed $5000).
Docherty also lists a separate debt of $896,626 to the “Rebels Directors” in his filing.
Sydney businessman Matt Bailey is listed as being owed $8.3 million and the collapsed company 3DMediTech $4.6 million.
More than $10 million in Docherty’s debts are due to other creditors, including Judo and other small business lenders.
Property records show Docherty sold his family home in March this year for $2.5 million. The property was held in the name of his wife, Georgina. He says in the documents that he sold his car for $20,000 in 2023.
Docherty did not respond to inquiries.